The short answer
A terminal or gateway sends a payment request through processing and card-network systems to the card issuer. An approval comes back. Clearing and settlement follow; your provider pays your business under its payout terms.
In this guide
Who does what?
You are the merchant: the business accepting payment. A terminal captures an in-person payment; a gateway securely passes payment information for online and other supported channels. The acquirer serves the merchant. The issuer supplies the customer’s card. A card network connects participants and sets scheme rules.
Visa and Mastercard generally connect separate issuers and acquirers. American Express can combine roles, so the exact chain differs. A payment provider can supply several parts of this service.
Approval, clearing and settlement
Authorisation asks whether a payment can proceed. Clearing exchanges the transaction information needed to settle obligations. Settlement moves funds between participants; the payout to your business follows your agreement. A terminal’s approved message is not proof of completed bank payout.
If a £100 sale produces less than £100 in your bank, do not automatically call the difference a processing fee. A payout can combine different days, refunds, fees and other adjustments. Reconcile the statement period first.
Connect the payment flow to the bill
The terminal, processing, network and acquiring services can appear as different charges. Some prices bundle them; others itemise them. Use the full recurring bill to calculate your all-in cost. Do not add an itemised component a second time if it is already included in the total.
Your comparison checklist
| Stage | Useful question |
|---|---|
| Customer pays | Card present, telephone or online? |
| Authorisation | How many requests are billed, including unsuccessful ones? |
| Clearing / settlement | Which transactions and adjustments belong to this period? |
| Business payout | What are the actual payout timing and fees? |
Common questions
Is a gateway the same as an acquirer?
No. A gateway handles payment information; an acquirer provides acquiring services to the merchant. One provider may offer both.
Does an approval guarantee I keep the money?
No. Refunds, disputes and other adjustments can still affect what you receive. Review the provider’s rules.
Sources and method
Public sources checked on 11 September 2026. Offers can change; your individual proposal and signed terms determine what applies.
Adyen: payment processing stages Mastercard: issuer and acquirer roles American Express merchant acceptanceWorked examples are illustrative mathematics, not provider quotes or promised savings. Read our editorial approach.
Apply this to your business
Use summary figures for a free check, then choose whether to discuss your requirements with Awais.